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The rules for 5471 can be somewhat complicated, and you should determine whether or not you may fit in the category of individuals who have an obligation to file. The due date is April 15 for individuals and March 15 for corporations. Filing Requirements for Those with an Interest in Foreign Corporations sambrotman.com - sambrotman.com -
Schedule O (Form 5471), Organization or Reorganization of Foreign Corporation, and Acquisitions and Dispositions of its Stock. Foreign corporations that file Form 5471 use this schedule to report the organization or reorganization of a foreign corporation and the acquisition or disposition of its stock.
Reasonable Cause for Form 5472 In general, when a taxpayer is able to show that they acted with reasonable cause and not willful neglect in failing to meet one of the reporting requirements, they can avoid penalties and if penalties were already issued, to have those penalties abated.
Any U.S. citizen, resident, trust, partnership, corporation, or estate that owns at least 10% of a foreign corporation must file Form 5471. (For the sake of simplicity, well refer to all of the above as a U.S. person throughout this article.) This form is filed alongside your annual tax return.
The US government uses Form 5472 to keep up with the financial activities between the corporations in question and every one of their foreign shareholders. This is why, when filling this form, each foreign stakeholder or related party involved in a reportable transaction needs to fill the form separately.
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Form 5471 should be filed as an attachment to the taxpayers federal income tax return (or, if applicable, partnership or exempt organization return) and filed by the due date (including extensions) for that return. A complete and separate form and all applicable schedules must be filed for each foreign corporation. Certain taxpayers related to foreign corporations must file Form 5471 irs.gov irs.gov
If a taxpayer fails to timely file Form 5471, the IRS may assert a $10,000 penalty for each failure for each applicable annual accounting period, plus an additional $10,000 for each month the failure continues, beginning 90 days after the taxpayer is notified of the delinquency, up to a maximum of $60,000 per return ( Relief from Penalties for Late-Filed Form 5471 redpathcpas.com redpathcpas.com

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